Welcome to Refinancing Simplified! In this blog series, we set out to help homeowners learn the basics of refinancing so that they can make the most of their mortgage.
Whether you’re ready to refinance or simply weighing your options, we’re here to help. With Apex Home Loans, you’ll have direct access to a professional who can help you determine when to refinance, help you choose the best type of loan for you, and answer any questions you have about your specific financial situation.
Refinancing is the process of getting better terms on your current mortgage by taking out a completely new loan. This new-and-improved mortgage will leverage positive market conditions, and Apex can customize it to your financial goals, helping you to achieve:
The two most common forms of refinancing are traditional refinances and cash-out refinances.
Traditional refinance: This straightforward form of refinancing is an effective way to make mortgage payments more affordable by lowering your interest rate. With this type of refinance, you can also shorten your loan term.
Cash-out refinance: If you’ve built equity in your home and would like a lump sum of cash for home improvements, paying off debt, or any number of other reasons, a cash-out refinance may be a good choice. With this lending option, a borrower refinances their home based on the current appraised value. After paying off the current mortgage, other liens, and closing costs, the borrower receives the equity difference in cash to use as they please. Similar to a Home Equity Loan, the interest from the first $100,000 of a cash-out refinance is tax deductible!*
Please be aware: by refinancing your existing mortgage, your total finance charges may be higher over the life of the loan.
*Consult with your Tax Adviser when it comes to deductibility